Those who believed that the summer rastoni would pay off the Athens Stock Exchange were soundly refuted. The… “slaughter” (figuratively speaking) in the international markets could not leave Athens Avenue unaffected. Any supports went for a walk…
Smoke…
Capitalization of 5.9 billion euros went up in smoke. Even the “heavyweights” measured losses, with the banks being the first. Ethniki, Piraeus, Eurobank and Alpha were at the center of the sell off, although there were also positive reports yesterday, such as UBS. And the icing on the cake? No mood from the investing public to react.
“Technical correction”
Of course, as stock market agents tell me, we should not ignore the fact that throughout the previous period Greek shares outperformed.
This is a critical factor, and according to analysts I spoke to they are talking about a “technical correction”. Even so, however, there is also the other side of the coin: They themselves tell me that despite the “bloodshed” there are opportunities.
Chances
Among the titles that, as they say, justify the assumption of risk are, among others, GEK TERNA, OPAP and Titanas. However, everyone’s eyes are on the international markets, which remain captive to international uncertainty (see escalation of tension in the Middle East)…
—-
Bells
In the international markets and the Greek stock market, war sirens sounded… yesterday.
But also on the domestic front of the market, prices and economic policy, bells are ringing…
The Mitsotakis government may be showing off its reform work, but industrialists and retailers are not convinced.
And every three or so… and some businessman or market representative makes sure to ring the bell…
And today I have several gathered for you…
—–
Food manufacturers
The government’s constant pressure on industry, suppliers and supermarkets to cut prices on everyday essentials to stop whining about shelf accuracy isn’t just troubling marketers, it’s now starting to cause outrage.
Even the supporters of Kyriakos Mitsotakis seem to be saying “enough” arguing that prices are deescalating and inflation is subsiding.
The IELKA research comes to support this position, since it says that in July 2024 inflation in supermarket chains was negative at -1.56% (against -1.92% in June, -1.25% in May , +1.10% in April, +0.28% in March, +2.70% in February and +3.00% in January 2024).
Takis Sarantis
“In order to keep the prices where they are, or even to raise them, some consumers shop” Takis Sarantis (Olympos – Tyras) told me characteristically, adding that the government exaggerates the issue of prices: “An extraordinary levy should be imposed at the level of results , as was done with the oilmen, let’s say I understand it, it’s a political decision. To come to 400 codes and find the 10 that have a slightly larger margin and the rest are harmful, or in any case are within the limits of the law, they are looking for a fight. What should supermarkets reduce? 1-1.5%, which is their profit margin?”, he pointed out.
Tax evasion (;)
“Unless they are implying that there is tax evasion. If they are implying something like that it is very heavy and they have to find it. You either accept it or you don’t” Sarantis tells me verbatim, adding another parameter to the accuracy equation…
And rather from the words of the shareholder of the dairy and cheese companies Olympos – Tyras, it appears that the reasons for Mitsotakis interventions in the market in such a way probably also have shades of populism…
—-
They cast spells…
But there are also entrepreneurs in the retail trade, who have found a different way to “exorcise” market interventions.
Do you remember when I told you last week that at the big meeting convened by the Minister of Development Takis Theodorikakos, the idea of repeating the measure applied to the category of detergents – and not only – to other categories of products was dropped?
They are avoided
As I informed you it is not a good idea for the market at all. And I’m referring to both retail, supermarket chains, and supply companies. Apart from the fact of course that everyone avoids “regulatory” interventions in the market.
Aristotle Panteliadis
Well, yesterday you will have seen that Aristotle Panteliadis, the boss of Metro AEVE, announced that 48% of the sales of the My Market chain in the first half of 2024 are made through offers.
And how the company’s internal inflation is negative 2%!
This is how Metro AEVE is “placed” in the top competition that is underway between the Hellenic Hypermarkets Sklavenitis AE, AB Vassilopoulos AE and Lidl Hellas, with all formality. The top competition is now between the industry’s big four. Besides, a few days ago Lidl Hellas issued a similar announcement. With approximately corresponding figures.
Criterion next two months
On the other hand, however, the majors in the sector are trying to “exorcise” the dispositions of the political leadership of the Ministry of Development to transfer the “detergent model” to the other sectors of the retail trade of consumer products. That is to say that it is … unnecessary, given that the competition is tough and is becoming … “downwards”. This practically means that it will escalate in the next period. And in any case, the criterion for what will be done will be the next two months. September and October! The joy of the consumer….
—-
Heavy industry
In contrast to the supermarket entrepreneurs who show milder reactions, the heavy industry rings a heavy bell against the government…
For other reasons… And one of those who often, frequently hits her… is Dimitris Papalexopoulos. And it concerns the reform inaction… of the government.
Dimitris Papalexopoulos
Titan’s president in an interview with EBEA’s “Development” magazine: “In Greece, the immediate prospects are undoubtedly positive, the structure of our economy is resilient, many sectors of the economy are doing very well and confidence has returned. However, we cannot afford to stop the reforms, which are necessary to ensure the necessary social and economic prosperity in the long term,” said the former BSE president.
Mr. Papalexopoulos, as I told you months ago, may no longer be at the helm of the BSE, but he will not stop ringing bells and bells for the need for reforms…
—-
Cable Greece – Cyprus
The bra de fer, therefore, between the government and the market on the front of everyday life and reforms has its anxiety… Who will finally prevail…
But there are other diplomatic thrillers…
And I refer to this with the electrical interconnection of Greece with Cyprus. It probably seems to be coming to an end.
I guess you remember what has happened with the ADMIE mega project of about 2 billion euros which envisages the interconnection of the electricity transmission systems of the two countries with an underwater cable. The president and CEO Manos Manousakis had done “Athens – Nicosia”, “Koliatsou – Pagrati” in order to convince the Cypriots of the project and to keep it “alive” but also to explain the necessity of recovering the cost of the investment from the construction phase.
Cost-benefit study
So, I learn that the Cypriot Ministry of Energy commissioned the evaluation of the cost-benefit study submitted by ADMIE for the “Great Sea Interconnector” project.
I am also informed that within the week the Energy Regulatory Authority of Cyprus is expected to issue its decision on the request for revision of its previous decision which rendered the investment “dead”.
It remains to be seen in practice if the information that reaches Athens gives a happy ending to the thriller of the Greece-Cyprus cable…
Allies
However, the electrical interconnection and Manos Manousakis also found unexpected allies in the project.
As I read in the Cypriot media, the Federation of Employers and Industrialists of Cyprus with their memorandum to the President of the Republic Nikos Christodoulidis expresses its full support for the Great Sea Interconnector: “It can only bring benefits for our country, businesses and citizens future the interconnection. Let’s not miss the opportunity”, they say…
Let’s see…
—-
#bloodletting.. #opportunities #ASE #bells #Sarantis #Papalexopoulos #Panteliadis #conjuring #hopes #Cyprus #allies #Manousakis #Economic #Post
